Wall Street Suffers Broad Selloff as Tech Stocks Lead Sharp Decline

The Nasdaq plunged over 2% and the Dow fell 800 points as Disney, NVIDIA, and other major names tumbled amid valuation concerns and economic uncertainty.

The Nasdaq plummeted 536.10 points (2.3%) to 22,870.36, the S&P 500 plunged 113.43 points (1.7%) to 6,737.49 and the Dow tumbled 797.60 points (1.7%) to 47,457.22.

The Dow Jones Industrial Average pulled back after hitting a record prior close, with a steep drop in The Walt Disney Company (DIS) down nearly 8% after beating earnings but missing on revenue.

Add in sharp losses among tech names like NVIDIA Corporation (NVDA), Broadcom Inc. (AVGO) and Alphabet Inc. (GOOGL) amid valuation concerns, and the broader pullback makes sense. Meanwhile, uncertainty lingers with key U.S. economic data missing after the government shutdown, complicating expectations for the Federal Reserve and interest-rate policy.

Computer hardware stocks turned in some of the market's worst performances, with the NYSE Arca Computer Hardware Index plummeting by 7%. Semiconductor, networking and software stocks saw substantial weakness, contributing to the steep drop by the tech-heavy Nasdaq. Gold, financial and airline stocks significant moved to the downside amid broad-based weakness on Wall Street.

Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index rose by 0.4%, while China's Shanghai Composite Index advanced by 0.7%. The major European markets moved to the downside on the day. While the French CAC 40 Index edged down by 0.1%, the U.K.'s FTSE 100 Index slumped by 1.1% and the German DAX Index tumbled by 1.4%.

In the bond market, treasuries gave back ground after moving notably higher in the previous session. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, climbed 4.7 bps at 4.11%.

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